Carbon regulations must spare the poor
Carbon regulations should relay subsidies that are phased out for being bureaucratic and costly, as recommended by economists. Moreover, hydrocarbon prices could go down to compete with cheaper green products, and thus, hydrocarbon prices must be kept high with some carbon-pricing penalties.
Alas, this punishing carbon pricing (to reduce the price gap between hydrocarbon products and green products) and heavy regulations (to impose the purchase of energy-efficient products) will hurt spending, as corporations can’t adapt their production overnight, and fragile small business can go bust. Consequently, the economy, the job market, and eventually the poor may lose their job.
That is why governments are rather passive to accelerate the green transition. They wait for prices of green products to go even lower.
Their last attempts to speed up the transition are bogged down:
-COP21 to spread the pain of the green market and prevent dirty imports without penalties: they still negotiate.
-Banning dirty products: some countries announce it… for 2030 or even later.
-Implementing carbon-pricing: the EU and some US states are still tweaking their “carbon market” systems.